1099 Form 2024 Printable
1099 Form 2024 Printable hello my name is Kayla Weaver and in this video what we going over form 1099 miscellaneous hopefully after watching this video you'll have a better idea of what the IRS uses this form for the filing requirements what the. Form w-9 is used for as it goes into form 1099 miscellaneous and then. Finally looking at an example form 299 miscellaneous that would be filed, to start I wanted to go over how the IRS uses this form or in essence why it's required if you're an employee your company is.
Going to send you a form w2 after the year ends that. Shows your total wages your total withholdings and some other information they also send the form w2 to the IRS so whenever you go to file your, tax return the IRS can look at your w2 or multiple w-2s if you worked for.
More than one company that year and match it up against your tax return line item for wage income that way they make sure you've reported all of your income for.
Wages if you're a self-employed individual you don't have this form w2 instead you, might receive form 1099 miscellaneous usually we're going to be looking at box 7 here non employee compensation so you, might get five different 1099 miscellaneous forms from various customers or clients you work. For throughout the year usually you're not going to just be able to add up box 7 and make that your. Income line-item because not all customers are going to issue you a form 1099 miscellaneous there are.
Some thresholds and other requirements that might actually exempt them from sending you one but it kind of gives the IRS a low in number on what to be expecting for a self-employed individual to, be reporting as. Income basically if you're the payer so you're the the business that's paying a subcontractor you get a tax deduction for that payment for services since you get a tax deduction the IRS wants to know hey, where's the other side the taxable income so this form 1099 so lanius helps them find that other. Side of the coin the taxable income so in general you're gonna file a. Form 1099 miscellaneous if you paid a person or company $600, or more during the year via cash check wire ACH bank transfer or a combination of those for services or rents and that's gonna be in your business so if you just have somebody. Come out to repair your a/c at your home and that's, not in your business then you don't have to worry about this it goes back to getting the tax deduction so you. Go to tax deduction for these things in your business so that's why, it's a requirement in your business so if you pay with a debit card a credit card PayPal or some other type of payment processor you are. Not required to file form 1099 miscellaneous this is because those payment processors actually have a separate form form 1099, K that they are required to file potentially so the IRS doesn't want to get a, form 1099 miscellaneous from you and a form 1099 K from let's say PayPal for the exact same income that doesn't help them gauge a true amount of income that, they should be expecting it might actually make them. Think they should be seeing more income for that subcontractor than it was actually paid out the form 1099 miscellaneous is due January 31st after the year ends and that's a pretty quick turnaround, time so that's one reason that we stress the importance of getting form w9s throughout.
The year and staying on top of your accounting, records now in general you actually aren't required to send out a form 1099 miscellaneous for payments to corporations and you'll know this based on the box that they check on their form w-9, whether they're C corporation an S corporation or an LLC taxed as a C corporation or S corporation you'll see that on.
Form w-9 and again that's in general so there are some exceptions where you would have to, file a form 1099 miscellaneous to. A corporation and then lastly real quick I wanted to mention that form 1009 miscellaneous like I said is required so there are some pretty hefty penalties that the IRS could impose if you don't comply with these requirements, all right so as I mentioned the w9 is what we're going to use to input, most of these fields into the, form 1099 so I just wanted to go through real quick looking at form w-9 and seeing how that goes directly into the form 1099 miscellaneous so on w9 we've got a name box and that's, where you'll put the recipients name so that's gonna be the person or business that you have these services from if they.
Have a doing business as name that might go on line, two lines five and six their address that way you. Know where to mail their copy of the 1099 and then depending upon if they're an individual or a company you'll put their social security number or their employer identification, number which should be filled out on the form w-9 as well and then when we, go over this in the form w-9 presentation but you always want to make sure that they complete part two certification that we have their signature on saying, that all that information above is correct so here again is just an example that actually, filled out form 1099 so we're taking the position that our company is the builders you can see our address and our employee, identification number there and then we've gotten all this information in orange from the form w-9 that Ronald green doing business as, Y drywall has provided us and. Then from our accounting records we know that we have paid Ronald's business fifty five hundred dollars in 2019 so that is what we're reporting to the, IRS and that's it kind of the basics of form 1099 miscellaneous that deadline is going to be approaching January 31st, like I said I'm so start getting those w9s if you have and already and.
Reach out to us with any questions on form 1099 miscellaneous and we will get him done Thanks.